Fertiliser Industry is best candidate for direct benefit transfer

If the farmers are given subsidy directly, this will not only stop leakage but will also avoid unnecessary paper work and red-tapism

  1. There is a need to increase the urea price by at least 15 per cent. The current selling price of urea which is highly subsidised is almost one-fourth the world price
  2. If we increase urea price then it can lead to more balanced fertilization and lower subsidy outgo
  3. It is desirable to have freight merged into subsidy so that there is only one stage of disbursement
  4. To grant support for organic compost is a welcome move, as this ensures replacement of carbon into the soil thereby making it more conducive for farming
  5. Single Super Phosphate (SSP) is the appropriate fertiliser for the small and marginal farmers.
  6. Countries like Brazil have used this cheaper alternative with some support rather than depend on imported di-ammonium phosphate (DAP)
Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
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